Charitable gift annuities

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Charitable gift annuities

A charitable gift annuity is simply an agreement between you and the Church, in which you exchange cash or securities for a fixed income for life, paid to one or two persons of your choosing. You can deduct a portion of your gift as a charitable contribution. Additionally, your annual payments will be taxed at favorable rates. Capital gains taxes from gifts of appreciated securities used to fund a charitable gift annuity will be minimized. Gift annuities can be established in amounts of $10,000 or more.

The payout rate is determined by an individual’s date of birth, which is required by the Internal Revenue Service in order to generate the proper calculation of the tax benefits.

How much will your charitable gift annuity pay? The First Church of Christ, Scientist subscribes to the payout rates posted annually by the American Council on Gift Annuities (ACGA). Current charitable gift annuity rates range from 4.4% to as high as 9.0%, according to one’s age. If an individual is not in need of all of the income provided, it is possible to increase one’s gift to the Church by accepting a lower payout rate. Agreeing to a lower payout rate will not only increase your gift to the Church, it will also increase your charitable deduction.

Here are sample one-life rates:

Age of Recipient Payout Rate Age of Recipient Payout Rate
60 4.7% 80 6.8%
65 4.7% 85 7.8%
70 5.1% 90+ 9.0%
75 5.8%    

  

Gift annuities can be arranged to make payments for the lifetimes of two people, such as a husband and wife, brothers and sisters, parents and children or close friends. Please call us for information on two-life payout rates for your particular ages. It is also possible to make a gift today but postpone the first payment for several years – a deferred payment gift annuity – which increases both your payments and your charitable deduction. Deferred charitable gift annuity arrangements can be an important part of one’s retirement planning.

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Charitable gift annuities - Planning considerations

A charitable gift annuity is a simple contract in which a donor transfers cash or securities to The First Church of Christ, Scientist, and we promise to pay an annuity (fixed income) for life to one or two individuals selected by the donor.

Charitable gift annuities - How to proceed

If you are interested in arranging a charitable gift annuity, please e-mail, call or write our office. We will help you determine the following.

Charitable gift annuities - Application information

You can fill out a Gift Annuity application here.